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A comment on JPMorgan to spend $1B on rental homes in the US to become a megalandlord. Parent comment

Re:JPMorgan to spend $1B on rental homes in the US to become... by tppiotrowski on Saturday December 31, 2022 @11:24AM (#34197864)
Is 4% an average rate of return for landlords? 4% of what: the capital you used to buy the house?

So if I buy a house for $100,000, I get $4000 in rent per year? Or I get $4000 in my pocket after I use the rent money to pay the mortgage and property tax?

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Re:JPMorgan to spend $1B on rental homes in the US to become... by toomuchtodo on Saturday December 31, 2022 @11:29AM (#34197936)
Typical RE return targets are 10-20%. Anything less than that and you might as well be in public securities.

There are different ways to calculate returns: IRR, cash on cash, but it’s immaterial for this discussion. TLDR you want returns higher than you can get elsewhere easier.

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